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Explaining Macroeconomics, The Fed, Interest Rates and Valuations (with Matt McBrady)
ACQ2 by Acquired
The Fed Is Not in the Federal Reserve System
In its original incarnation, how did the fed have money to lend to banks if it wasn't originating from the federal government? It had the ability to create money. And so whenever the federal reserve wants to actually give credit to a bank, all it does is make a book entry transaction. So historically, the government's just a totally different actor. Sometimes i run a deficit when i spend more than i'm raising in taxes. Other times i have a surplus when i raise more i taxes than i spend. I try to keep books about balanced. You know that's going to have impacts on the economy that are maybe analogous, in some cases, to monetary policy. But think of molit
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